Gold ETP holdings have continued to tumble in November and are now down 38 tons for the month thus far. Total metal held in trust has hit a fresh low since May 2010 and net redemptions are showing little sign of slowi..

30 Nov 2013

LONDON (Commodity Online): Gold prices in the global market are expected to continue their downward movement this year and in 2014 on likely US Fed tapering. For the time being, continuing outflows, lower than expected physical demand, firm equities and a jump in short positions are putting pressure on the yellow metal prices.

The Barclays Global Macro Survey noted that 60% of investors believe that equities would be the most profitable asset class in the next three months.

“The outperformance of equities has certainly weighed on interest in gold this year and, in our view, contributed to the ETP outflows. A quarter of the investors surveyed expected gold prices to trade between $1200-1250 and almost a quarter expected gold to trade below $1200/oz at the end of Q1 14 with most expecting Fed tapering to commence in March 2014, said Barclays in its weekly analysis.

Gold ETP holdings have continued to tumble in November and are now down 38 tons for the month thus far. Total metal held in trust has hit a fresh low since May 2010 and net redemptions are showing little sign of slowing down.

According to Barclays view, “should prices breach $1200/oz, the weakness is likely to be exacerbated given additional holdings become loss making and particularly if equity markets remain firm.”